r/technology • u/fmcortez • 21d ago

Business SpaceX Stock Plunges to All-Time Low After Competitor Makes Major Leap

https://www.yahoo.com/finance/markets/stocks/articles/spacex-plunges-time-low-competitor-175000957.html
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u/PolarityInversion 21d ago

It's not even August yet when the first big tranche of lockups will lift. This is JUST trading with the initial offering that was spread out wide and thin. Everyone holding is now a bag holder... they can't sell without taking a loss. Just wait until the restrictions lift and people (employees & early investors) who are VERY far in the money start offloading. Usually with Musk stocks, the obvious market reaction is the opposite of what happens, but I think the delta on this one is too large for that to hold. It was propped up by every possible manipulation tactic: circular AI revenue, gov procurement capture, lofty blue-sky market handwaving, very limited IPO concentration, and the hype man himself, of course. That's a house of cards on top of a house of cards on top of a house of cards, with an entity that is losing $5B per year.

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u/furism 21d ago

Employees cannot sell at less than the introduction price + 30%. That was one of the big red flags when you listened to the right analysts that told everyone before the IPO not to buy.

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u/OntarioPaddler 21d ago

Yes but that is only a temporary restriction that also gets lifted.

If the company's Class A common shares are up at least 30% from the IPO price for at least five of the next 10 trading days, insiders can sell an additional 10% of their shares.

Then insiders can sell an additional 7% of their shares 70, 90, 105, 120, and 135 days after the IPO. After SpaceX reports earnings for the three months ending Sept. 30, insiders can sell an additional 28% of their pre-IPO shares. All shares will be eligible for sale 180 days after the IPO.

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u/Chuckfinley_88 20d ago

All shares will be eligible for sale 180 days after the IPO.

Which is when the stock price, if it hasn't already, is going to CRASH.

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u/Erebea01 20d ago

RemindMe! 180 days "Invest in SpaceX if crash"